CoinBene LTD Germany is a crypto exchange, which according to the announcement by BaFin, is not registered on the commercial register of the country. The warning was based on the argument that in Germany cryptocurrencies are considered to be financial instruments and hence any trading of digital assets on behalf of the clients should come about only by proper authorization from the German Banking Act Kreditwesengesetz or KWG.
Keeping in mind the arguments mentioned above, the Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin has issued a warning in the public interest against CoinBene, laying charges against the firm for working without a legal license. Apart from this, BaFin also claims that CoinBene has been responsible for the recruitment of freelancing traders involved with cryptocurrencies to work on behalf of the crypto exchange firm.
A Complicated Controversy
Before the warning issued by BaFin, CoinBene had used the Twitter platform to claim that the firm was neither operating in Germany nor had it any such thing planned for the near future. The tweet by CoinBene also claims that the job recruitments that had been carried out in the name of the exchange in Germany were counterfeit:
“We received numerous inquiries regarding our alleged hiring in Germany. But CoinBene is not planning to open any office nor hiring any representative in Germany. Nonetheless, we would like to thank those who actively reached out to us for your concern and understanding.”
Earlier this year in March, rumors abounded that CoinBene had been hacked, suggested by the delay while withdrawing or depositing funds. These rumors were denied by CoinBene, stating that the delays were due to a maintenance program the platform was undergoing for an upgrade.